1 Acre Red Chilli Cultivation Project Report in India: Production Cost, and Profit

The chili pepper, also called chili, is a spice crop widely produced and regarded as the most significant and valuable crop in the global economy. India produces the most chili peppers, with Andhra Pradesh producing the most dried. India’s most significant chili-growing states are Andhra Pradesh, Maharashtra, Karnataka, and Tamil Nadu, accounting for nearly 75% of all chili-producing territory. Indian chili is primarily exported to Asian nations like China, Sri Lanka, Malaysia, Bangladesh, Singapore, Thailand, and the UAE.

It is known for its color and degree of spiciness. Chili peppers are used as a spice to add heat to various types of cuisine because of their reputation for being hot and sour. Capsaicin, the active component in chili peppers, is used as a medicine because of its potential for recovery. For growing chilies, sandy loam, clay loam, and loam soils with excellent airflow and drainage work best. The primary purpose of growing chilies is to produce their seeds, which are used in numerous stews, chutneys, and pickles.

1 Acre Red Chilli Cultivation Project Report in India

Market and Demand for Red Chilli Cultivation

In 2020-21, India produced 2.29 million tons of chile from 1.47 million hectares. Andhra Pradesh produced 41% of India’s chile, followed by Karnataka, Maharashtra, Tamil Nadu, and West Bengal. Red chilies are used in many cuisines, including sauces, pickles, and snacks, increasing world demand. The world chili market was worth $4.7 billion in 2020, and Mordor Intelligence predicts a 5.5% CAGR between 2021 and 2026.

India exports 1.5 lakh tons of chilies yearly, mostly to China, Bangladesh, Sri Lanka, Malaysia, and the UAE. In 2020, China imported USD 393,37 million of Indian chiles. Chili farmers can profit from rising domestic and foreign red chili demand. Drip irrigation, fertigation, and greenhouse cultivation have helped farms boost yield and quality.

Best High Yield Variety for Red Chilli Cultivation

Naga Jolokia: The Ghost Pepper, used for chili paste, pickles, and sauces, is highly spicy. One of the world’s hottest chilies, its Scoville value is 1,041,427.
Byadagi: This Karnataka-grown variety has a deep red color and high oil content. Chilli powder and Bisi bele wash, and Sambar are made from it.
Dhani: Uttar Pradesh, Bihar, and West Bengal can grow this high-yielding pepper. It’s highly pungent and pest-resistant.
Guntur Sannam: Grown in Guntur, Andhra Pradesh, this type is hot and pungent. Pickles, stews, and chutneys use it.
Kashmiri: This Jammu and Kashmir type is bright red and mildly spicy. It makes Kashmiri chili powder, known for its color and taste.
Reshampatti: This Maharashtra-grown type is pungent and yields well. Vada pav and Misal pav use it.
Sattur: Tamil Nadu and Andhra Pradesh grow this high-yielding pepper. Its high pungency is used in pickles, stews, and chutneys.
Teja: This Andhra Pradesh type is very spicy. Hyderabadi biryani and Andhra-style poultry curry use it.
334: A high-yielding pepper for Karnataka and Andhra Pradesh. Its rich oil content makes chili powder.
Wonder Hot: This Maharashtra-grown type has a high yield and pungency. It makes jams, sauces, and chutneys and is pest-resistant.

In case you missed it: Chili Production Guide: A Step-By-Step Cultivation Practices

Cost of Cultivation for 1-Acre Red Chilli Cultivation in India

Field preparation: Expenses include tillage, leveling, and seedbed preparation. This expense can vary based on farm equipment availability, labor costs, and soil type. In India, the average expense of field preparation for 1-acre red chili cultivation is around Rs. 3,500.
Nursery and planting/sowing costs: Include the expense of seeds, seed treatment, and labor costs associated with sowing the seeds. The price of seed differs according to its variety and quality. In India, the average nursery and planting/sowing expense for a 1-acre red chili cultivation is around Rs. 4,500.
Weeding: The cost of weeding includes the labor cost of physically removing weeds or using herbicides. Weeding costs vary based on weed pressure in the field and labor costs. The average expense of weeding 1-acre red chili cultivation in India is around Rs. 4500-5500.
Plant protection costs: Include insecticides, fungicides, and other chemicals to safeguard crops from pests and diseases. Plant protection costs differ based on pest and disease pressure in the field and chemical costs. In India, the average expense of plant protection for a 1-acre red chili cultivation is around Rs. 6,500-8,000.
Fertilizers: The price of organic or chemical fertilizers used to increase soil fertility and crop yield is included in the price. Fertilizer prices can vary based on soil fertility and crop requirements. In India, the average expense of fertilizers for a 1-acre red chili cultivation is around Rs. 6,000-7,000.
Wages are the labor costs: Involved in different farm activities such as planting, weeding, harvesting, etc. Labor costs can vary based on labor availability and wage rates in effect. The typical wage for a 1-acre red chili cultivation in India is around Rs. 4,000-6000.
Staking, transportation, and other expenses: This fee covers staking, transportation, irrigation, and other miscellaneous expenses. The expense of staking and transportation can vary based on distance and availability. In India, the average cost of staking, transport, and other expenditures for 1-acre red chili cultivation is around Rs. 4,000-6500

The total cost of cultivation: Rs. 34,000-40,000. Please note that these are average estimates and that the actual expense of cultivation may change depending on many variables, including location, weather, labor availability, etc.

Total Returns from 1 acre of Red Chilli Cultivation in India

Rainfed: Average yield of dry red chilies – 2 to 3.5 qt/acre
Irrigated: Average yield of dry red chilies – 6 to 9 qt/acre
1qt dry red chilies cost Rs. 8500-10500 per quintal.
An average yield of 2.75 qt/acre for rainfed agriculture and 7.5 qt/acre for irrigated cultivation.

The total returns from 1 acre of red chili cultivation in India are:

Rainfed: 2.75 qt/acre, Revenue = 24,000- 30,000
Irrigation: 7.5 qt/acre yield, Revenue = 62,000- 79,000

The best high-yield variety would have a higher quintal price and better total returns. However, input costs (seeds, fertilizers, pesticides, etc.), labor costs, market demand, and rates will affect total returns.

Net Profit from 1 acre of Red Chilli Cultivation in India

Net Profit for irrigated = Total Revenue – Total Cost of Cultivation
Net Profit = (Rs. 62,000-79,000) – Rs. 34,000-40,000
Net Profit = Rs. 22,000-45,000

the net Profit from 1 acre of red chili cultivation in India, with irrigation and a total cost of cultivation of Rs. 34,000-40,000 per acre, would be Rs. 22,000-45,000. However, the Net Profit could vary depending on other factors, such as seed quality (high yield), labor costs, market demand, and prices.

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Conclusion

With the right planning and methods, red chili cultivation in India can be profitable. Farmers can make profits of up to Rs. 1,000,000 per acre with a production expense of about Rs. 50,000. So, growing red chilies can be a fantastic choice if you’re a farmer seeking to diversify your crop.

1 Acre Red Chilli Cultivation Project Report in India: Production Cost, and Profit